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Two-phase LMMHD energy conversion systems have potentially significant advantages over conventional systems such as higher thermal efficiency and substantial simplicity with lower capital and maintenance costs. Maintenance of low velocity slip is of importance for achieving high generator efficiency. A bubbly flow pattern ensures very low velocity slip. The full governing equations have been written out, and a computer prediction code has been developed to analyze performance of a two-phase flow LMMHD generator and nozzle under conditions of no slip. Three different shapes of a LMMHD generator have been investigated. Electrical power outputs are in the 20 kW range. Generator efficiency exceeds 71 percent at an average void fraction of about 70 percent. This is an appreciable performance for a short generator without insulating vanes for minimizing electrical losses in the end regions.